Depositaries charge an annual fee that depends on the value of the precious metals stored in their vaults. These deposits generally calculate around half to 1% of the value of the stored metals per year. Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium. Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary
to store gold.
Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. In some cases, the company also acts as the custodian of your account, which means they also take care of the paperwork and IRS compliance for your IRA. We’ve researched 18 reputable companies that offer Gold IRA services and searched them for the highest consumer ratings from the Business Consumer Alliance (BCA). In addition, while the IRS allows gold coins such as American Gold Eagle, American Buffalo, Canadian Maple Leaf, and Australian Gold Nugget, it does not allow investments in South African Krugerrand
or British Sovereign gold coins.
Your custodian bank can refer you to an approved institution and process the gold transfer as part of setting up your Gold IRA. However, if you work with a reliable and customer-focused gold IRA firm, it is likely that they have a favorable buyback policy for coins or gold bars, although their transaction costs may be higher for gold bars. If you’re looking to open a Gold IRA account to diversify your investment portfolio, protect against inflation, boost your long-term wealth, or achieve another investment goal, you should compare your options first. You must store the gold in a gold IRA in an IRS-approved depot. You can’t keep it in a safe, a home safe, or under your
mattress.
The IRS has established metal fineness guidelines that determine whether gold or silver in the form of gold bars or coins are acceptable for a gold IRA. The job of a gold IRA company is to facilitate the creation of the IRA and the purchase of gold coins or gold bars. This is less of a problem if a gold IRA was only part of its overall pension portfolio as part of a diversification strategy in which gold provides inflation protection. Gold IRA companies can vary widely, and choosing the best company for your investment goals is critical if you want to ensure a comfortable and hassle-free retirement
.
A gold IRA often has higher fees than a traditional IRA or Roth IRA, which invests exclusively in stocks, bonds, and mutual funds. Augusta’s two major drawbacks are its limited selection of metals and the high minimum investment requirements for setting up a gold IRA
.
